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Mittal buys in China

Dutch company Mittal Steel Co., the world’s biggest steelmaker, has made its first investment in China, buying a 37 per cent share of a state-owned steel mill.

BEIJING

Dutch company Mittal Steel Co., the world’s biggest steelmaker, has made its first investment in China, buying a 37 per cent share of a state-owned steel mill.

The government approved the $337-million-US purchase of shares in Valin Iron and Steel Co. Ltd., the official Xinhua News Agency said. China is one of the world’s biggest steel consumers but foreign investment in its domestic industry is still limited.

The government planned to issue a steel industry policy that will ban foreigners from taking controlling stakes in all local steel companies. It does not appear likely that the Mittal deal will be affected.

Mittal is also one of several companies bidding for non-core divisions of Stelco Inc.

Associated Press

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